The Billings City Council's recent work session on May 19, 2025, unveiled a proposed budget for fiscal year 2026 totaling $457 million, primarily driven by charges for services. This budget reflects a slight increase in personnel costs and highlights significant capital projects, including storm sewer investments and an airport remodel.

City officials reported that the budgeted revenue is projected at $457 million, with expenses estimated at $438 million. The bulk of the revenue comes from utility charges and property taxes, with a notable $64 million earmarked for property tax revenue. However, the value of a mill is expected to decrease by 16%, leading to an increase in the number of mills required to maintain current revenue levels.

Among the key projects outlined, the city plans to ramp up investments in storm sewer infrastructure and continue improvements on Rimrock Road. The budget also includes funding for the Amen Park Recreation Campus, although adjustments may be necessary to shift some costs to the 2026 budget due to ongoing contracts.

Personnel expenses are set to rise by approximately $4.7 million, or 4%, with the addition of seven full-time employees, including two police officers. The city is also grappling with rising insurance costs, with property insurance having quadrupled since 2019. Despite these challenges, a recent bid for workers' compensation insurance yielded a $400,000 savings, providing a positive offset to the budget.

The council anticipates further discussions and potential amendments as they finalize the budget, aiming to balance fiscal responsibility with the needs of the community. The next steps will involve detailed reviews of revenue sources and expense allocations to ensure the budget aligns with city priorities and public safety initiatives.